The Use of Judicial Reference in California

Wooden gavel from the court over the opened law book reflected on white background with space for text. Shallow DOF

California businesses can utilize several methods to resolve disputes in place of formal litigation. While mediation and arbitration are the most common forms of alternative dispute resolution, business may also agree to handle disputes through judicial reference. Judicial reference combines elements of traditional court room decision-making and arbitration, and may be an attractive alternative in light of increased judicial skepticism of mandatory arbitration clauses in the state.

The California Code of Civil Procedure allows parties to appoint a referee who works within the court system to hear and decide some or all the issues in a given dispute. A private referee in a judicial reference is often a retired judge. The referee is authorized to act in the same manner as a presiding judge in a courtroom setting. Thus, the referee has the power to resolve any issues related to the matter and to issue a determination on issues of law and fact.

Judicial reference proceedings follow the rules and procedures of a formal courtroom trial. Specifically, the rules of civil procedure and evidence apply in judicial reference. Once the referee issues a decision after a specified period of time, the decision is binding upon the parties after it is confirmed by the court. If one of the parties decides to move for a new trial, he can appeal through the state court of appeal.

Like all forms of alternative dispute resolution, judicial reference has both benefits and disadvantages. It can be less costly and time consuming than a jury trial. Moreover, judicial reference provides parties with the benefit of choosing their own referee. The parties can choose a judge whom they believe to a be a neutral party. The judge selected may have specialized experience adjudicating the matters involved in the dispute and may have additional time to prepare for the proceedings. In addition, parties retain the right to appeal the decision of the referee on any legal basis. In contrast, most decisions that arise out of arbitration cannot be appealed. However, while arbitration and mediation proceedings are privately held in most circumstances, judicial hearings are open to the public.

Contact Shane Coons at 949-333-0900 or visit his website at www.ShaneCoonsLaw.com to find out more about his practice.

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The Use of Judicial Reference in California

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